Abstract

Saudia Dairy and Foodstuff Company as popularly known the SADAFCO [1], is one of the leading companies in the Gulf region and professionally managed supply chain management to ensure food for all. In terms of quality assurance, it obtained International Standard Organisation’s (ISO22000:2005) certificate and enjoyed a competitive advantage in diary industry and milk based products in serving approximately 32000 customers across the GCC region. It also enjoyed a network of distributors without any forward or backward integration strategy to cater the need of the vast markets it serves in UAE, Kuwait, and Bahrain in GCC including Jordon. SADAFCO has about 45 years of rich experience in the industry and started all commercial activities ranging from manufacturing, storage, distribution to other logistics management after being established in 1976. SADAFCO is a Saudi brand name to be reckoned with that offered kitchen and dining table items and a wider range of products across several product lines including Milk, Tomato Paste, Ketchup, Snacks, Ice Cream, Cheese, Instant Milk Powder, Creamy Products, Fruit Nectars, Butter and French Fries to mention a few. Henceforth SADAFCO is a leading and world-class company in the GCC region. The company has good financial position over the given period of time. The challenges brought forward by the Covid-19 is not an exception to this global economic challenge has yet to be seen depending upon the financial performance of year 2020. Historically this Saudi dairy and Foodstuff Company expanded its capacity of manufacturing and distribution after being merged with two other dairy companies and ownership was transferred to make it as holding company to be listed in home and GCC in 2005. Eventually it was listed on the Saudi Arabian stock exchange TADAWUL [2] while majority shareholding with the new entity goes to Qurain Petrochemicals Industries (QPIC). Today’s SADAFCO is a brand power and well sought after share in the securities market of the Kingdom.

Highlights

  • SADAFCO is a leading brand in supply chain management in the Kingdom of Saudi Arabia and a world-class company

  • UHT (Long Life) Milk marketed in Saudi Arabia, with the Saudia brand capturing more than half of the Long-Life Milk market and almost a third of total drinking milk Among the established brands are Crispy and Baboo’s names included Cheese, Instant Milk Powder, Fruit Nectars, Butter and French Fries in its list of popular names

  • Company’s manufacturing facilities are located in the east and west regions - Dammam and Jeddah respectively. These manufacturing facilities are accredited for quality assurance through ISO 22000:2005 certificate for assuring customer patronage and confidence in its wide range of product categories

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Summary

Dr Zaid Ahmad Ansari

Professor of Marketing, College of Business and Economics, Qassim University, Buraidah, Saudi Arabia. In terms of quality assurance, it obtained International Standard Organisation’s (ISO22000:2005) certificate and enjoyed a competitive advantage in diary industry and milk based products in serving approximately 32000 customers across the GCC region It enjoyed a network of distributors without any forward or backward integration strategy to cater the need of the vast markets it serves in UAE, Kuwait, and Bahrain in GCC including Jordon. The challenges brought forward by the Covid-19 is not an exception to this global economic challenge has yet to be seen depending upon the financial performance of year 2020 This Saudi dairy and Foodstuff Company expanded its capacity of manufacturing and distribution after being merged with two other dairy companies and ownership was transferred to make it as holding company to be listed in home and GCC in 2005.

BACKGROUND
Balance First Period Reserves
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